Analysis of Profitability Ratios
Beginner level
Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Intel Corp., profitability ratios
Based on: 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Intel Corp.’s gross profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Intel Corp.’s operating profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Intel Corp.’s net profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Intel Corp.’s ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Intel Corp.’s ROA improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
Gross Profit Margin
Intel Corp., gross profit margin calculation, comparison to benchmarks
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 26, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross margin | 42,140 | 43,737 | 39,069 | 36,191 | 34,679 | |
| Net revenue | 71,965 | 70,848 | 62,761 | 59,387 | 55,355 | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 58.56% | 61.73% | 62.25% | 60.94% | 62.65% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 42.61% | 37.79% | 34.21% | 23.36% | 27.06% | |
| Apple Inc. | 37.82% | 38.34% | 38.47% | 39.08% | 40.06% | |
| Applied Materials Inc. | 43.72% | 45.31% | 44.93% | 41.67% | 40.92% | |
| Broadcom Inc. | 55.24% | 51.48% | 48.25% | 44.86% | 52.07% | |
| Cisco Systems Inc. | 62.94% | 62.04% | 62.96% | 62.87% | 60.38% | |
| Micron Technology Inc. | 45.72% | 58.87% | 41.51% | 20.20% | 32.21% | |
| NVIDIA Corp. | 61.21% | 59.93% | 58.80% | 56.11% | 55.53% | |
| Qualcomm Inc. | 64.57% | 54.94% | 56.07% | 58.61% | 58.95% | |
| Texas Instruments Inc. | 63.71% | 65.11% | 64.26% | 61.63% | 58.15% | |
Based on: 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12).
1 2019 Calculation
Gross profit margin = 100 × Gross margin ÷ Net revenue
= 100 × 42,140 ÷ 71,965 = 58.56%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Intel Corp.’s gross profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Operating Profit Margin
Intel Corp., operating profit margin calculation, comparison to benchmarks
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 26, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 22,035 | 23,316 | 17,936 | 12,874 | 14,002 | |
| Net revenue | 71,965 | 70,848 | 62,761 | 59,387 | 55,355 | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 30.62% | 32.91% | 28.58% | 21.68% | 25.29% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 9.37% | 6.97% | 3.83% | -8.71% | -12.05% | |
| Apple Inc. | 24.57% | 26.69% | 26.76% | 27.84% | 30.48% | |
| Applied Materials Inc. | 22.93% | 27.80% | 26.61% | 19.88% | 17.53% | |
| Broadcom Inc. | 15.24% | 24.63% | 13.51% | -3.09% | 23.92% | |
| Cisco Systems Inc. | 27.39% | 24.95% | 24.94% | 25.71% | 21.91% | |
| Micron Technology Inc. | 31.51% | 49.34% | 28.88% | 1.35% | 18.52% | |
| NVIDIA Corp. | 32.47% | 33.05% | 27.99% | 14.91% | 16.21% | |
| Qualcomm Inc. | 31.59% | 3.26% | 11.73% | 27.57% | 22.85% | |
| Texas Instruments Inc. | 39.79% | 42.53% | 40.66% | 35.89% | 32.88% | |
| Operating Profit Margin, Sector | ||||||
| Technology Hardware & Equipment | 26.34% | 28.01% | 25.84% | 24.36% | 26.96% | |
| Operating Profit Margin, Industry | ||||||
| Technology | 26.01% | 27.13% | 25.62% | 24.62% | 25.32% | |
Based on: 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12).
1 2019 Calculation
Operating profit margin = 100 × Operating income ÷ Net revenue
= 100 × 22,035 ÷ 71,965 = 30.62%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Intel Corp.’s operating profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
Net Profit Margin
Intel Corp., net profit margin calculation, comparison to benchmarks
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 26, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 21,048 | 21,053 | 9,601 | 10,316 | 11,420 | |
| Net revenue | 71,965 | 70,848 | 62,761 | 59,387 | 55,355 | |
| Profitability Ratio | ||||||
| Net profit margin1 | 29.25% | 29.72% | 15.30% | 17.37% | 20.63% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 5.07% | 5.20% | 0.81% | -11.63% | -16.54% | |
| Apple Inc. | 21.24% | 22.41% | 21.09% | 21.19% | 22.85% | |
| Applied Materials Inc. | 18.52% | 19.20% | 23.62% | 15.90% | 14.26% | |
| Broadcom Inc. | 12.05% | 58.80% | 9.59% | -13.13% | 19.99% | |
| Cisco Systems Inc. | 22.39% | 0.22% | 20.02% | 21.81% | 18.27% | |
| Micron Technology Inc. | 26.97% | 46.51% | 25.04% | -2.23% | 17.90% | |
| NVIDIA Corp. | 35.34% | 31.37% | 24.11% | 12.26% | 13.47% | |
| Qualcomm Inc. | 18.07% | -21.40% | 11.06% | 24.22% | 20.85% | |
| Texas Instruments Inc. | 34.88% | 35.35% | 24.61% | 26.89% | 22.97% | |
| Net Profit Margin, Sector | ||||||
| Technology Hardware & Equipment | 22.63% | 22.50% | 19.37% | 18.64% | 20.98% | |
| Net Profit Margin, Industry | ||||||
| Technology | 22.97% | 20.88% | 18.61% | 19.41% | 19.41% | |
Based on: 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12).
1 2019 Calculation
Net profit margin = 100 × Net income ÷ Net revenue
= 100 × 21,048 ÷ 71,965 = 29.25%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Intel Corp.’s net profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
Return on Equity (ROE)
Intel Corp., ROE calculation, comparison to benchmarks
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 26, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 21,048 | 21,053 | 9,601 | 10,316 | 11,420 | |
| Stockholders’ equity | 77,504 | 74,563 | 69,019 | 66,226 | 61,085 | |
| Profitability Ratio | ||||||
| ROE1 | 27.16% | 28.24% | 13.91% | 15.58% | 18.70% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 12.06% | 26.62% | 7.04% | -119.47% | — | |
| Apple Inc. | 61.06% | 55.56% | 36.07% | 35.62% | 44.74% | |
| Applied Materials Inc. | 32.94% | 48.44% | 36.73% | 23.85% | 18.09% | |
| Broadcom Inc. | 10.92% | 45.99% | 8.34% | -9.20% | 28.94% | |
| Cisco Systems Inc. | 34.62% | 0.25% | 14.53% | 16.89% | 15.04% | |
| Micron Technology Inc. | 17.59% | 43.77% | 27.33% | -2.28% | 23.57% | |
| NVIDIA Corp. | 44.33% | 40.78% | 28.91% | 13.74% | 14.27% | |
| Qualcomm Inc. | 89.35% | -524.14% | 8.02% | 17.95% | 16.78% | |
| Texas Instruments Inc. | 56.33% | 62.04% | 35.62% | 34.33% | 30.02% | |
| ROE, Sector | ||||||
| Technology Hardware & Equipment | 38.29% | 37.01% | 23.47% | 22.09% | 28.27% | |
| ROE, Industry | ||||||
| Technology | 29.94% | 27.13% | 20.33% | 20.89% | 22.73% | |
Based on: 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12).
1 2019 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 21,048 ÷ 77,504 = 27.16%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Intel Corp.’s ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
Return on Assets (ROA)
Intel Corp., ROA calculation, comparison to benchmarks
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 26, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 21,048 | 21,053 | 9,601 | 10,316 | 11,420 | |
| Total assets | 136,524 | 127,963 | 123,249 | 113,327 | 103,065 | |
| Profitability Ratio | ||||||
| ROA1 | 15.42% | 16.45% | 7.79% | 9.10% | 11.08% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 5.66% | 7.40% | 1.21% | -14.97% | -21.23% | |
| Apple Inc. | 16.32% | 16.28% | 12.88% | 14.20% | 18.38% | |
| Applied Materials Inc. | 14.22% | 18.64% | 17.68% | 11.80% | 9.00% | |
| Broadcom Inc. | 4.04% | 24.46% | 3.11% | -3.48% | 12.88% | |
| Cisco Systems Inc. | 11.88% | 0.10% | 7.40% | 8.83% | 7.91% | |
| Micron Technology Inc. | 12.91% | 32.59% | 14.40% | -1.00% | 12.01% | |
| NVIDIA Corp. | 31.15% | 27.11% | 16.93% | 8.33% | 8.76% | |
| Qualcomm Inc. | 13.31% | -14.88% | 3.77% | 10.90% | 10.38% | |
| Texas Instruments Inc. | 27.84% | 32.56% | 20.87% | 21.88% | 18.40% | |
| ROA, Sector | ||||||
| Technology Hardware & Equipment | 14.59% | 14.69% | 10.27% | 10.42% | 13.82% | |
| ROA, Industry | ||||||
| Technology | 12.92% | 11.94% | 9.25% | 10.23% | 11.41% | |
Based on: 10-K (filing date: 2020-01-24), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-12).
1 2019 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 21,048 ÷ 136,524 = 15.42%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Intel Corp.’s ROA improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |